Paxos, a well-known cryptocurrency exchange platform, has recently introduced a new stablecoin named Lift Dollar (USDL) that offers the unique feature of generating income. This development falls under the oversight of the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the UAE, establishing Paxos International as the official issuer.
The arrival of this innovative stablecoin in the market provides investors with an appealing option, as it is backed by short-term US government bonds and safeguarded against insolvency risks. Charles Cascarilla, the CEO of Paxos, has likened USDL to other stablecoins like PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG), all maintaining a 1:1 ratio with the US dollar.
“We have incorporated a programmatic daily yield feature to make it resemble more of a savings product rather than a checking account product, which is a fresh perspective on traditional stablecoins,” mentioned Cascarilla. The distinct design of USDL facilitates broader access to dollars and the risk-free rate in a secure and regulated manner.
Today, Paxos International has unveiled Lift Dollar ($USDL) – a stablecoin that generates yield, making US dollars and secure yield accessible to all. Users can now seamlessly spend, save, and trade while earning yield.
Despite its potential, Paxos USDL will not be accessible in the United States due to regulatory obstacles. However, the stablecoin will be rolled out initially in Argentina through distribution partners Ripio, Buenbit, and TiendaCrypto.
As part of the launch, a fee reduction policy has been introduced to entice early investors. “To kick off the launch, we are waiving 30 basis points (bps) of our asset management fee, retaining only 20 bps, resulting in users receiving over 5%,” shared Daya, a Paxos executive.
Disclaimer:
The opinions and insights provided by the author and individuals mentioned in this article are purely for informational purposes and do not constitute financial or investment advice. Investing or trading in cryptocurrencies involves a risk of financial loss.
Editor’s Choice:
Inflation Slows Down: Federal Reserve Experiences Relief in April, Yet Prices Remain Elevated
Pressure on Treasury Yields Poses a Challenge to Bitcoin’s Bullish Trajectory